IDEAS home Printed from https://ideas.repec.org/p/ags/widerw/295624.html
   My bibliography  Save this paper

Oil Driven Macroeconometric Model of Kuwait

Author

Listed:
  • Salih, Siddig A.
  • Branson, William H.
  • Ebraheem, Yusuf H. Al

Abstract

Kuwait is a well endowed, small and open economy. In this economy the Government is the owner of the bulk of the wealth. Its wealth comes basically from underground oil and oil-accumulated assets. Since there is virtually no tax, the government influences economic activity through its expenditure and expenditure is determined by returns from its wealth. Moreover, the country depends heavily on imports. The structure of the model contains these features and the inherent dichotomy of Oil vs. Non-oil, and Kuwaiti vs. Non-Kuwaiti.jf The empirical analysis of the 1970-1986 data confirmed the dominance of the Government in the economy and the characteristics of a small and open economy. More importantly, the simulation exercise emphasizes the leading role of oil prices in overall economic activities and various accounts to the extent that a modest rise in oil prices is likely to turn the budget deficit into huge public savings and foreign accounts into mounting surpluses.

Suggested Citation

  • Salih, Siddig A. & Branson, William H. & Ebraheem, Yusuf H. Al, "undated". "Oil Driven Macroeconometric Model of Kuwait," WIDER Working Papers 295624, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:ags:widerw:295624
    DOI: 10.22004/ag.econ.295624
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/295624/files/WP89.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.295624?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Labys, Walter C. & Maizels, Alfred, 1990. "Commodity Price Fluctuations and Macro-economic Adjustments in the Developed Countries," WIDER Working Papers 295623, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    2. Walter C. Labys & Alfred Maizels, 1990. "Commodity Price Fluctuations and Macro-economic Adjustments in the Developed Countries," WIDER Working Paper Series wp-1990-088, World Institute for Development Economic Research (UNU-WIDER).
    3. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    4. Moghadam, Valentine M., 1990. "Gender and Restructuring," WIDER Working Papers 295622, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    5. Valentine M. Moghadam, 1990. "Gender and Restructuring: Perestroika, the 1989 Revolutions, and Women," WIDER Working Paper Series wp-1990-087, World Institute for Development Economic Research (UNU-WIDER).
    6. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ardo H. Hansson, 1991. "The Importance of Being Earnest: Early Stages of the West German Wirtschaftswunder," WIDER Working Paper Series wp-1991-094, World Institute for Development Economic Research (UNU-WIDER).
    2. Ahmed Alyousha, 1997. "Investigating Bahrain business cycles," Applied Economics, Taylor & Francis Journals, vol. 29(1), pages 43-50.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ardo H. Hansson, 1991. "The Importance of Being Earnest: Early Stages of the West German Wirtschaftswunder," WIDER Working Paper Series wp-1991-094, World Institute for Development Economic Research (UNU-WIDER).
    2. Walter C. Labys & Alfred Maizels, 1990. "Commodity Price Fluctuations and Macro-economic Adjustments in the Developed Countries," WIDER Working Paper Series wp-1990-088, World Institute for Development Economic Research (UNU-WIDER).
    3. Duclos, Jean-Yves, 1998. "Social evaluation functions, economic isolation and the Suits index of progressivity," Journal of Public Economics, Elsevier, vol. 69(1), pages 103-121, July.
    4. Andrew E. Clark, 2003. "Unemployment as a Social Norm: Psychological Evidence from Panel Data," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 289-322, April.
    5. Thomas Carver & Arthur Grimes, 2019. "Income or Consumption: Which Better Predicts Subjective Well‐Being?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(S1), pages 256-280, November.
    6. Chul‐Woo Kwon & Peter F. Orazem & Daniel M. Otto, 2006. "Off‐farm labor supply responses to permanent and transitory farm income," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 59-67, January.
    7. Bunting, David, 2009. "The saving decline: Macro-facts, micro-behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 282-295, May.
    8. Alfred Michael Dockery & Sherry Bawa, 2015. "The Impact of Children on Australian Couples’ Wealth Accumulation," The Economic Record, The Economic Society of Australia, vol. 91(S1), pages 139-150, June.
    9. Jonathan Gruber & Aaron Yelowitz, 1999. "Public Health Insurance and Private Savings," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1249-1274, December.
    10. Duclos, J.Y., 1995. "Economic Isolation, Inequality, and the Suits Index of Progressivity," Papers 9510, Laval - Recherche en Politique Economique.
    11. EKOJA, Ematun Vivian & OLANIYI, Oyinlola & IHUOMA, Anthony, 2024. "Determinants of Household Consumption Pattern in Federal Capital Territory (FCT), Abuja," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(12), pages 388-411, December.
    12. Jung Sakong, 2021. "Effect of Ownership Composition on Property Prices and Rents: Evidence from Chinese Investment Boom in US Housing Markets," Working Paper Series WP-2021-12, Federal Reserve Bank of Chicago.
    13. Lang, Harald, 1987. "Herman Wold on Optimal Properties of Exponentially Weighted Forecasts," Working Paper Series 179, Research Institute of Industrial Economics.
    14. Brautzsch, Hans-Ulrich & Günther, Jutta & Loose, Brigitte & Ludwig, Udo & Nulsch, Nicole, 2015. "Can R&D subsidies counteract the economic crisis? – Macroeconomic effects in Germany," Research Policy, Elsevier, vol. 44(3), pages 623-633.
    15. Sadullah Çelik & Yasemin Özerkek, 2008. "Panel cointegration analysis of consumer confidence and personal consumption in the European Union," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 10(2), pages 161-168, February.
    16. repec:spo:wpecon:info:hdl:2441/f0uohitsgqh8dhk9814kl7606 is not listed on IDEAS
    17. Kevin A. Hassett & Aparna Mathur & Gilbert E. Metcalf, 2009. "The Incidence of a U.S. Carbon Tax: A Lifetime and Regional Analysis," The Energy Journal, , vol. 30(2), pages 155-178, April.
    18. Luigi Giamboni & Emanuele Millemaci & Robert J. Waldmann, 2013. "Evaluating how predictable errors in expected income affect consumption," Applied Economics, Taylor & Francis Journals, vol. 45(28), pages 4004-4021, October.
    19. Ricardo Barradas & Ines Tomas, 2023. "Household indebtedness in the European Union countries: Going beyond the mainstream interpretation," PSL Quarterly Review, Economia civile, vol. 76(304), pages 21-49.
    20. Blackman, Allen & Osakwe, Rebecca & Alpizar, Francisco, 2010. "Fuel tax incidence in developing countries: The case of Costa Rica," Energy Policy, Elsevier, vol. 38(5), pages 2208-2215, May.
    21. Alok Bhargava, 2006. "Modelling the Health of Filipino Children," World Scientific Book Chapters, in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 11, pages 153-168, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    Keywords

    International Development;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:widerw:295624. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.